U.S. Stocks Shake Off GDP Report ·
The Dow Jones Industrial Average added 189 points, or 2.1%, on Thursday after signs of improvement in credit markets tempered an expected decline in economic growth. The S&P 500 index gained about 2.6%. (NYT)
October 30, 2008
Markets, Economic News
Hedge Funds To Ask EU For Porshe-VW Resolution ·
Hedge funds that were short-squeezed by Porsche's surprise disclosure Monday it owns roughly 75% of Volkswagen will petition the European Union to clamp down on a controversial German legal loophole that allowed the automaker to secretly boost its stake. Some of the funds are facing billions of dollars in losses. (The Times)
Asian, European Stocks Rally On Rate Cuts ·
Global markets rallied Thursday as Asian and European central banks echoed the Federal Reserve's Wednesday rate decision with cuts of their own. In Asia, Japan's Nikkei 225 index rose 10% while Seoul's Kospi index soared 12%. (NYT)
A Silver Lining For Goldman Sachs [OPINION] ·
Rob Cox and Pierre Briancon of BreakingViews.com contend that although Goldman Sachs restricted partnership offers this year, turbulent times in the securities industry will surely prevent its Wall Street competitors from poaching top talent. (BreakingViews)
U.S. Pension Funds Face $100B Deficit ·
Pension industry analysts estimate that U.S. companies will need to inject more than $100 billion into their employee pension funds over the next year to cover recent market losses. Currently, pension fund losses are estimated at 20% year to date. (FT)
U.S. Stocks Lose Ground On Bleak Fed Outlook ·
The Dow Jones Industrial Average failed to sustain a 300 point rally Wednesday, closing down 74 points after the Federal Reserve tempered a half percentage rate cut with a bleak forecast for exports and consumer spending. (CNN Money)
Human Touch Returns To NYSE Floor ·
The floor of the New York Stock Exchange has roared back into action the past few weeks as investors seek to push trades through brokers and specialists rather than computers amid the unprecedented market volatility. (FT)
Treasury, Markets Brace For Insurance Earnings ·
Analysts expect Hartford Financial, Prudential Financial and MetLife to report steep third-quarter losses late Wednesday, increasing pressure on the U.S. Treasury to expand its $700 billion bailout program to include the insurance sector. (CNNMoney)
U.S. Markets Soar On Hopes For Fed Rate Cut ·
U.S. stocks soared Tuesday afternoon as investors rushed to buy bargain-priced equities ahead of the Federal Reserve's monetary policy meeting Wednesday. The Dow Jones Industrial Average climbed 889 points, or 10.9%, to close above 9,000 for the first time in a week. (NYT)
Public Pension Funds Lose 14.8% In 2008 ·
Northern Trust estimates that U.S. public pension funds have dropped 14.8% in value this year as volatile stock markets roiled portfolios. The declines comes as 27 of the 65 largest pension funds still try to recover deficits from the 2001 downturn. (Washington Post)
Global Bank Losses Double To $2.8 Trillion ·
The Bank of England estimated Tuesday that global banks' mark-to-market losses on financial products like asset-backed securites have exceeded forecasts doubling to a staggering $2.8 trillion since April. U.S. banks have lost $1.57 trillion, according to the report. (CNBC)
Asian Markets Rebound, Hang Seng Climbs 14.4% ·
Asian stocks staged a surprise rally Tuesday led by the Hang Seng which climbed 14.4%, its biggest daily gain since February 1998. Japan's Nikkei 225 index also gained 6.4% after the Japanese government instituted a ban on naked short selling of stocks.(FT)
BP Capital Hit By Investor Withdrawals ·
BP Capital, the $2 billion hedge fund managed by billionaire T. Boone Pickens, is reportedly facing a wave of investor withdrawals after losing 60% of its value this year amid a sharp decline in oil and energy stocks. (WSJ)
DJIA Loses 203 After Late Session Plunge ·
The Dow Jones Industrial Average failed to sustain an afternoon rally Monday closing down 203 points, or 2.4%, as investors moved anxiously to the sidelines before the Federal Reserve's highly anticipated monetary policy meeting Tuesday. (CNNMoney)
Deutsche Bank Loses $400M On Derivatives Bets ·
Deutsche Bank, Germany's largest bank, reportedly lost more than $400 million on equity derivatives trades as dislocations in capital markets diminshed investor demand for securities. The loss erases nearly half of the firm's second-quarter revenue from equity sales and trading. (Bloomberg)
